Rise and Fall in Real Estate

Sanjeev Kathuria(Founder, Author & CEO at Torbit Consulting) - August 08, 2020 - - 0 |
Rise and Fall in Real Estate

There is neither dearth of intelligence nor a dearth of passion. There is neither dearth of ambition nor dearth of commitment .“INDIA SURELY HAS the TALENT TO CREATE GLOBAL SUPER BRANDS“ WE JUST NEED TO DO IT RIGHT INDIAN ENTREPRENEURS can also build Brands like FORD, GE, UNILEVER, SONY, APPLE …………rands that are not NATIONAL but GLOBAL, Brands which are TIMELESS. For India to become a Superpower we definitely need to have products and services which are Globally recognized.

So far we have seen Indian Brands Rise and Fall barring a few like TATA, RELIANCE, GODREJ, MAHINDRA, etc in overall space and brands like DLF, HIRANANDANI, PRESTIGE, SHOBHA, etc in Real Estate Space

Where do we go wrong? : Why are we not able to carry the successful creation of our product or service from the regional to the national arena and then from the national to the global arena? I am restricting my thoughts on real estate. DLF BRAND has stood tall over the last couple of decades maintaining its leadership position in the real estate industry.

DLF which was synonymous with Gurgaon in the initial phase moved on to develop projects in almost all parts of the country from Himachal Pradesh to Tamil Nadu. KUDOS to Shri K P Singh Chairman of DLF for creating a Globally respected brand in the real estate industry

GODREJ, SHAPOORJI, PRESTIGE, SOBHA, TATA HOUSING, and PURVANKRA are some of the other brands which are regional leaders and now are on the journey to become national developers. The consumer is also trusting national players more than the regional developers and hence the above are enjoying success

What are they doing right? Where are the others going wrong?

In the last 5 years, we have seen many regional real estate brands fail and fade away. They have not only put the career of many in danger but have also wiped out the hard-earned earnings of thousands of people. Let me list some of the reasons which are responsible for the fall of these real estate brands:

1. Lack Of Corporate Governance: The Industrialist follows a strict compliance path and does not take shortcuts, unlike the small regional players who think by the day. Most of the small regional brands have failed on this account and are out of business.

2. Promoter-Driven Organization: These are typically companies that go as per the direction of the promoter and there is less acceptance of the thoughts of the employees or consultants. The employees of such organizations are not in sink with the vision and mission of the promoter and hence have no ownership, no passion, and no commitment.

3. Leadership: Corporates follow a Structure headed by a Leader – In a Promoter-driven organization the promoter is the Leader. Professional leadership is a must to run an organization

4. Financial MisManagement

5. Extensive expansion plans which do not augur well with the size of the organization

6. Diversion of funds

7. Disintegrated Team

8. Poor Human Resource Department

9. Lack of Procedures and Processes

10. Arrogance and Ego

AND ABOVE ALL “Organizations become customer-unfriendly when they taste success .” These surely are some of the reasons if not all for the fall of Brands. The organization is nothing but the people who work in it.

Vineet Nayyar of HCL once said “ A Leaders’ biggest strength is his TEAM “ A team which takes ownership team which has valued team which has passion team which is committed team and takes pride in being part of the organization A team which has “GREAT LEADER “ The entrepreneur has to learn to delegate and trust. He has to detach himself from the driver’s seat and hand it over to professionals to run the organization. Audit he must.

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